The Fair and Accurate Credit Transactions Act (FACTA)
The Fair and Accurate Credit Transaction Act, also known as FACTA or the FACT Act was signed into federal law on Dec. of 2003. It contains a number of mandates intended to combat consumer fraud and related crimes including identity theft. Specifically it requires the destruction of all paper documents containing identifiable consumer information.
Section 682.3 of the law states: Any person who maintains or otherwise possesses consumer information or any compilation of consumer information for business purposes must properly dispose of such information by taking reasonable measures to protect against unauthorized access to or use of the information in connection with its disposal.
Shredding of such documents so that the information cannot be practicably be read or reconstructed meets the laws standard.
For more information about the Fair and Accurate Credit Transaction Act, please visit www.regulations.gov.